Wolves confirmed, if all the necessary paperwork is completed, Lopetegui will take over at Molineux following game against Arsenal, which is the last ahead of the World Cup break.
Davis, Wolves’ under-18s coach, took temporary charge of the first team after Bruno Lage was sacked at the start of last month, assisted by James Collins and goalkeeping coach Tony Roberts.
Wolves remain in the bottom three after winning only one game since Lage left, against Nottingham Forest, with their only other point under Davis coming in last week’s 1-1 draw at Brentford.